I just moved into a late 60s house with aluminum wiring. Recently, the lights, TV, etc. flickered throughout the house, then everything in the family room went off. The power was out in other parts of the house long enough to reset all the digital clocks. No breakers tripped. Now power is okay everywhere except the family room, which is all on one circuit. Throughout that circuit, I now find that the neutral wire is hot. I have 120v between the hot and ground, 120v between the neutral and ground, and nothing between the hot and neutral. What happened? I can't think how this could have happened without tripping a breaker. If the breaker is faulty, why hasn't the house burned down already?

If you have no power to the fixtures in this room and both the hot and neutral to ground show 120 you have a short between the black and white wires but that should have tripped the breaker. This is perplexing but I will try to picture othre scenarios and get back to you.

First: Neutral is white
Hot is black

Neutral goes to the whitish screw
Black goes to the brass screw

Newtral; goes to the long socket of the outlet
Hot goes to the narrow one.

120 - Hot to Neutral
120 - Hot to ground
~0 V - Ground to neutral

So, make sure the polarity is correct based on the above.

You seem to be a candidate for AMP/ Tyco Electronics system for upgrade. It must be used by trained contractors. The contractor has to rent the tool after showing proper documantation.

Aluminum needs a special anti-oxident paste to be used on all connections.

AMP's system attaches a small copper pigtail to all the ends. I think you're a candidate for this.

Your other problem.

Re-verify the polarity or get a <$5.00 outlet tester.

I'll bet that a mains connection is loose. It may need to be removed, pase applied and re-attached.

KISS anu thoughts on why 120 on the neutral isn't tripping the breaker?